A-LevelEconomicsBalance of PaymentsFeb/Mar 2018Paper 1 Q231 Mark
In 2014 Australia and China negotiated a trade agreement. This removed Chinese tariffs on 95% of Australian exports in exchange for greater access to the Australian economy for Chinese investors. How would the agreement be expected to affect the Australian balance of payments in the short run?
Acurrent account: greater inflow, financial account: greater inflow
Bcurrent account: greater inflow, financial account: greater outflow
Ccurrent account: greater outflow, financial account: greater inflow
Dcurrent account: greater outflow, financial account: greater outflow
✓ Correct Answer
The correct answer is A. This question tests the candidate's understanding of balance of payments within the Economicssyllabus. The examiner's mark scheme requires...
📋 Examiner Report & Trap Analysis
Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...
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